Horizon Blue Cross Blue Shield of New Jersey is considering converting to forprofit status, according to press accounts. The company has explored this previously, as have others.
Humana, Inc., on June 30th, announced that it had signed a definitive agreement to acquire the Medicare Advantage focused Metcare Health Plans, Inc. (MHP), a wholly owned subsidiary of Metropolitan Health Networks, Inc. Humana will purchase all issued and outstanding common stock of MHP for approximately $14 million in this all-cash transaction.
According to the recently released June 2008 data from the Centers for Medicare & Medicaid Services, the total enrollment for Medicare Advantage has increased to 10.1 million members. Medicare Special Needs Plan enrollees has also increased to 1.2 million members.
Average health plan stocks decreased 19.7% for the month of June. Valuation indicators decreased last month. Since none of the fourteen plans reported earnings last month, it is reasonable to assume that the driver was worsening investor sentiment.
HealthSpring, Inc.’s Board of Directors extended the stock repurchase program for $50 million to June 30, 2009. Humana, Inc. announced the completion of its public Senior Notes for an aggregate of $750 million. Universal American Corp.’s Board of Directors approved the repurchase of up to an additional $50 million of the plan’s common shares.
AmeriChoice, a subsidiary of UnitedHealth Group has received all regulatory approvals for its acquisition of Unison Health Plans, resulting in the completion of the transaction.
Aetna, Inc. has appointed Steven Kelmar as the head of Government Relations. Blue Cross Blue Shield of Arizona has announced the appointment of Tom Dameron to the position of Vice President of Sales CIGNA Corp. announced that David Cordani will assume the position of President and Chief Operating Officer for the Company. Humana, Inc. will be the head of Medicare Operations due to his appointment to Senior Vice President of Senior Products. UnitedHealth Group has appointed Peter Gill to the position of Vice President of Corporate Development for the Company. WellPoint, Inc. announced that Raj Bal will be the President of Individual Business segment, effective July 8th.
Aetna, Inc., HealthSpring, Inc. and Humana, Inc. all reaffirmed their guidance for the fiscal year 2008 operating earnings, while Coventry Health Care, Inc. has reduced it estimates. WellCare Health Plans, Inc. filed an 8-K with the SEC on May 15th which shed some light on its first quarter earnings. Net income is expected to be substantially lower than the first quarter of 2007 due to a higher health benefits ratio and expenses associated with the ongoing special committee investigation.
This month we look at executive compensation for 2007. Strong relationships were found between compensation and various operational attributes of the health plans.
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